KKR increases investment in USI

USI Insurance Services, one of the largest insurance brokers in the country, announced that existing shareholder KKR is making a new equity investment of more than $1 billion in the company.

KKR and CDPQ acquired USI in 2017 in partnership with USI’s management and employees. Over the past six years, USI has executed numerous growth initiatives and acquisitions to extend its leadership position in insurance brokerage and consulting with a broad range of technology-enabled property and casualty, employee benefits, personal risk and retirement solutions. The USI team has more than doubled in size to over 10,000 team members across more than 200 offices. USI’s management and employees will retain their significant ownership in the company going forward.

Under the terms of the agreement, KKR and USI will purchase shares of USI held by CDPQ and certain other investors; more than 50% of the shares held by CDPQ will be purchased in the transaction. Following the closing of the transaction, KKR will be USI’s largest single shareholder.

“When we embarked on our journey with KKR and CDPQ, we shared a vision about the forces impacting our industry and a plan for USI to be a leading innovator in that transformation, combining world-class sponsorship and investment with our team of experts, differentiated solutions and technology. The power of this strategic partnership has exceeded our expectations, and we are thrilled to be continuing our journey with the support of our long-term shareholders.” – Michael Sicard, chairman and CEO of USI.

“Alongside KKR, a tremendous strategic partner in this investment journey, we have supported the growth of USI since 2017 – a unique and resilient company with an outstanding management team committed to offering best-in-class services to its clients. Our dynamic partnership has unlocked multiple opportunities and USI is well positioned to capitalize on its strengths and to continue creating value for all stakeholders.” – Martin Longchamps, EVP and head of Private Equity at CDPQ.

“We are enormously proud of everything the USI team has accomplished and we have a high conviction in the opportunity ahead for this winning team and operating model as USI continues to innovate and scale. Together with CDPQ we have supported significant investments in USI’s platform and technology that position USI for long-term growth. We are pleased to reach this agreement to increase our ownership with a substantial investment of additional long-term capital.” – Chris Harrington, partner at KKR.

The transaction is expected to be completed by the end of 2023. Terms of the transaction were not disclosed.